Revenue-Linked Financing

Flow Capital’s revenue-linked growth capital provides a flexible option for entrepreneurs looking for an innovative alternative or complement to traditional debt and equity financing.

Our goal is to align with your plans for quickly increasing the value of your business by trading our capital for a small percentage of your company’s future revenues, matching our returns to your success.

A typical royalty agreement will have the following structure:

Amount:
Up to 50% of annualized run rate. Initial investment of $500K-$1 million; up to $4 million over multiple rounds.
Monthly Payment:
Minimum payment or up to 4% of revenue
Buyout Options:
You control
Control Features:
None
Financial Covenants:
None
Security:
None
Warrant Coverage:
Light

You could be the right fit if you are:

  • Capital-efficient and growing
  • Operating in high growth market, such as technology, SAAS, regulated cannabis, renewables, healthtech, CPG
  • Operating history greater than 2 years
  • Annual revenues or ARR of greater than $1 million
  • Close to or at operating profitability
  • Revenue visibility

FAQs

Will my company qualify for funding from Flow Capital?

Companies within our portfolio have more than $1 million in revenues, strong growth, capital efficient business models and are run by seasoned and invested executives.

Are there companies or sectors that Flow Capital won’t fund?

Flow does not invest in companies that operate in the industrial, bricks and mortar retail, traditional mining extraction, oil and gas extraction, film and pharmaceutical drug development sectors.

Where does Flow Capital invest?

Flow is currently focused on investing in companies based in the United States and Canada.

How much interest can I expect to pay?

None, there is no interest paid. Repayment is in the form of royalties on top-line revenue only.

What is the cost of the Flow Capital royalty?

Flow’s royalty offering is a hybrid structure with features of between mezzanine debt and equity. Like mezzanine debt, it has recurring monthly payments. Like equity, our investment is subordinated to all other existing debts at the time of investment and generates higher returns when the owners generate outsized returns through growth or a sale of the business. With these hybrid features in mind, our structure is priced in between mezzanine debt and equity.

Will you sign an NDA with our company?

Yes, upon request